Mesa Air joins United Airlines in investing in Silicon Valley electric aircraft startup Archer
Jeff Ludes/Archer
Posted at 8:52 AM, Feb 16, 2021
and last updated 2021-02-16 10:52:30-05
Phoenix-based Mesa Air Group (Nasdaq: MESA) is working with United Airlines (Nasdaq: UAL) to purchase a fleet of electric aircraft that could one day serve as âair taxis.â
An investment into Silicon Valley startup Archer is part of the regional airlineâs effort to invest in emerging technologies that decarbonize air travel, Mesa said in a Thursday press release.
United announced plans to invest in Archer and eventually buy 200 of Archerâs eVTOL (electric vertical takeoff and landing) aircraft â a purchase price of $1 billion.
Cowen analyst Helane Becker said United could use Archer’s aircraft between New York City and Newark Liberty Airport in New Jersey, or from downtown Chicago to O’Hare Airport, allowing customers to avoid traffic.
Chicago-headquartered United portrayed the move as part of a broader plan to invest in technology behind cleaner modes of air travel. Chief executive Scott Kirby said Archer’s design “has the clear potential to change how people commute within major metropolitan cities all over the world .
Many airlines including United have made investments in biofuel, but limited supplies are likely to hinder wider use of such alternatives to jet fuel for many years.
United Airlines Holdings Inc said on Wednesday it will buy up to 200 small electric air taxis to help customers in urban areas get to the airport.
The airline said it will help electric-aircraft start-up Archer develop an aircraft capable of helicopter-style, vertical takeoffs and landings. Archer hopes to deliver its first aircraft in 2024, if it wins certification from the Federal Aviation Administration.
United said once the aircraft are flying, it and partner Mesa Airlines will acquire up to 200 that would be operated by another company.
According to an Archer presentation to investors, the orders are worth US$1 billion with an